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Why ServiceNow (NOW) Dipped More Than Broader Market Today
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ServiceNow (NOW - Free Report) ended the recent trading session at $675.30, demonstrating a -1.78% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.8%. Meanwhile, the Dow experienced a drop of 0.76%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 0.1% over the past month, lagging the Computer and Technology sector's gain of 2.11% and the S&P 500's gain of 3.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $2.78, up 21.93% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.4 billion, indicating a 23.47% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, ServiceNow boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 53.75 right now. This represents a premium compared to its industry's average Forward P/E of 25.29.
We can additionally observe that NOW currently boasts a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.
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Why ServiceNow (NOW) Dipped More Than Broader Market Today
ServiceNow (NOW - Free Report) ended the recent trading session at $675.30, demonstrating a -1.78% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.8%. Meanwhile, the Dow experienced a drop of 0.76%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 0.1% over the past month, lagging the Computer and Technology sector's gain of 2.11% and the S&P 500's gain of 3.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $2.78, up 21.93% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.4 billion, indicating a 23.47% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, ServiceNow boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 53.75 right now. This represents a premium compared to its industry's average Forward P/E of 25.29.
We can additionally observe that NOW currently boasts a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.